4. Property and Equipment

Property and equipment, net consists of the following:

(1)Classified in other current assets in the accompanying condensed consolidated balance sheets.

In the three and nine months ended September 30, 2017, capital expenditures were approximately $60.7 million and $181.9 million, respectively, and in the three and nine months ended September 30, 2016, capital expenditures were approximately $46.1 million and $155.1 million, respectively. Capital expenditures in all periods were primarily related to real estate acquisitions, construction of new franchised dealerships and pre-owned stores, building improvements and equipment purchased for use in Sonic’s franchised dealerships and pre-owned stores. Assets held for sale as of September 30, 2017 and December 31, 2016 consists of vacant land that Sonic expects to dispose of in the next 12 months.

Impairment charges for the three and nine months ended September 30, 2017 were approximately $0.2 million and $3.3 million, respectively, which include the write-off of goodwill and property and equipment as part of the closure of two stand-alone pre-owned stores that were purchased in 2016, and the write-off of costs associated with certain construction projects. Impairment charges for the three and nine months ended September 30, 2016 were approximately $6.1 million and $6.2 million, respectively, related to the write-off of property and equipment to be demolished in conjunction with a facility construction project and the write-off of costs associated with certain construction projects.